Correlation Between China Telecom and Nintendo
Can any of the company-specific risk be diversified away by investing in both China Telecom and Nintendo at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining China Telecom and Nintendo into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between China Telecom and Nintendo Co, you can compare the effects of market volatilities on China Telecom and Nintendo and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in China Telecom with a short position of Nintendo. Check out your portfolio center. Please also check ongoing floating volatility patterns of China Telecom and Nintendo.
Diversification Opportunities for China Telecom and Nintendo
0.0 | Correlation Coefficient |
Pay attention - limited upside
The 3 months correlation between China and Nintendo is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding China Telecom and Nintendo Co in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Nintendo and China Telecom is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on China Telecom are associated (or correlated) with Nintendo. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Nintendo has no effect on the direction of China Telecom i.e., China Telecom and Nintendo go up and down completely randomly.
Pair Corralation between China Telecom and Nintendo
If you would invest (100.00) in China Telecom on December 30, 2023 and sell it today you would earn a total of 100.00 from holding China Telecom or generate -100.0% return on investment over 90 days.
Time Period | 3 Months [change] |
Direction | Flat |
Strength | Insignificant |
Accuracy | 0.0% |
Values | Daily Returns |
China Telecom vs. Nintendo Co
Performance |
Timeline |
China Telecom |
Risk-Adjusted Performance
0 of 100
Low | High |
Very Weak
Nintendo |
China Telecom and Nintendo Volatility Contrast
Predicted Return Density |
Returns |
Pair Trading with China Telecom and Nintendo
The main advantage of trading using opposite China Telecom and Nintendo positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if China Telecom position performs unexpectedly, Nintendo can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Nintendo will offset losses from the drop in Nintendo's long position.China Telecom vs. Artisan Partners Asset | China Telecom vs. Fidus Investment Corp | China Telecom vs. Logan Ridge Finance | China Telecom vs. Tyson Foods |
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Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Insider Screener module to find insiders across different sectors to evaluate their impact on performance.
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